GBP/USD: Sterling Takes Out Double Top to Pop Above $1.36. Huge Week Unfolds.

Both sides of the pair will get cracking this week with plenty of important news and updates. Here’s how you can play it.

💥 Serling Cracks $1.36

• The GBPUSD pair was on the move Monday, kicking off the week with a fresh jump to a two-month high over $1.36 with a session high of $1.3620. The push crossed a previously solid double top that couldn’t hold a third bullish attack. Next up? It’s a busy week, so let’s dive right in and see what you can do about it.
• Both sides of the Atlantic are on deck for reporting with the US rolling out its retail sales data for August on Tuesday. It’s a key indicator of the American consumer’s spending behavior and will help gauge the dollar’s vibe ahead of the big Wednesday.
• CPI data out of the UK on Wednesday is expected to show price pressures remained elevated in August. Analysts have penciled in a jump of 3.8% from last year, same as the month before.

✂️ Fed’s Big Rate Cut Coming?

• The thunder comes later the same day when Fed boss Jay Powell will sweep every corner of the market with his nonchalant “Good afternoon”. The keenly anticipated wrap up of the Fed’s two-day meeting is likely to deliver the first interest rate cut this year. Big if true.
• What can you expect from the pound-dollar? Wild fluctuations in both directions, for one. A drop in rates isn’t a guarantee that the dollar will get knocked lower.
• This one has been so hyped about that many are bracing for a ‘buy the rumor, sell the news’ twist, because the rate reduction is almost entirely priced in. Don’t be unprepared – get your stops and make sure you’re covered.

🔥 Let’s Max Out on Rate Decisions

• A day later, on Thursday, it’s the UK’s central bank turn to decide its own interest rate path. But here, the market hasn’t been led to believe that a cut may be coming.
• Instead, the decision is shaping up as a non-event as Bank of England officials have communicated they don’t see much reason to drop below the current 4% and would most likely keep borrowing costs flat. But you never know, so again, stay prepared.
• Apparently, this week has decided to max out on interest rate decisions. Besides these two, the Bank of Canada is expected on Wednesday to reduce its interest rate to 2.5% from 2.75%. And on Friday, the Bank of Japan is likely to stay put, at 0.5%. A surprise hike there could send the yen flying.